§208-A. Adjustment for sudden and severe disruption of valuation

1.Request for adjustment.
A municipality that has experienced a sudden and severe disruption in its municipal
valuation may request an adjustment to the equalized valuation determined by the State
Tax Assessor under section 208 for the purposes of calculating distributions of education
funding under Title 20-A, chapter 606-B and state-municipal revenue sharing under
Title 30-A, section 5681. A municipality requesting an adjustment under this section
must file a petition, with supporting documentation, with the State Tax Assessor by March 31st of the year following the tax year in which the sudden and severe disruption
occurred and indicate the time period for which adjustments to distributions are requested
under subsection 5.

B. The net reduction in equalized municipal valuation is attributable to the cessation of business operations, removal, functional or economic obsolescence not due to short-term market volatility or destruction
of or damage to property resulting from disaster attributable to a single taxpayer that occurred in or was not reasonably determinable until the prior tax year; and [2013, c. 368, Pt. O, §3 (AMD); 2013, c. 368, Pt. O, §11 (AFF); 2013, c. 385, §§1, 3 (AFF); 2013, c. 544, §§6, 7 (AFF).]

C. The municipality's equalized tax rate of residential property following the sudden and severe disruption in municipal valuation exceeds the most recent state average of residential property for which data is available. [2015, c. 236, §1 (AMD).]

For purposes of this subsection, "removal" does not include property that was present
in the municipality for less than 24 months. This subsection does not apply to property
acquired by a municipality that otherwise could seek relief pursuant to this section.

[
2015, c. 236, §1 (AMD)
.]

3.Procedure.
A municipality may request an adjustment under this section by filing a petition with
the State Tax Assessor in accordance with this subsection.

A. The municipality, on forms prescribed by the State Tax Assessor, shall identify a
net reduction in equalized municipal valuation of at least 2% of the municipality's
equalized value attributable to the property of a single taxpayer, the date of the
loss and the cause of the loss. The municipality must include an appraisal report
prepared by a qualified professional appraiser with respect to the property responsible
for the loss that shows the value of the property immediately prior to the loss and
the value of the property following the loss. The appraisal report must include a
summary of the appraiser's consideration of the cost, income capitalization and sales
comparison approaches to the value of the property. The municipality is required to
provide any other documentation to support its claim as determined by the State Tax
Assessor, including, if requested, all records associated with the municipality's
assessment of the property subject to the requested adjustment for the 3-year period
prior to the date of the reduction in valuation.

For purposes of this paragraph, "qualified professional appraiser" means an individual
who has at least 5 years' experience determining the just value of real and personal
property of the commercial and industrial type using the 3 standard methods of valuation
and who attests in writing to the State Tax Assessor that the individual has a current
working knowledge of the application of the 3 standard methods of valuation to real
and personal property of the commercial and industrial type and:

(1) Is a certified general real property appraiser licensed under Title 32, chapter
124; or

C. If the State Tax Assessor determines that a municipality qualifies for an adjustment
under this section, the State Tax Assessor shall calculate the amount of the adjustment
for the municipality by determining the amount by which the state valuation determined
under section 208 would be reduced as a result of the net sudden and severe disruption
of equalized municipal valuation for the state valuations to be used in the next fiscal
year by the Commissioner of Education and the Treasurer of State. The State Tax Assessor
shall adjust subsequent state valuations until such time as the state valuation recognizes
the loss. The State Tax Assessor may limit the time period or amount of adjustment
to reflect the circumstances of the sudden and severe loss of valuation. [2013, c. 368, Pt. O, §4 (NEW); 2013, c. 368, Pt. O, §11 (AFF); 2013, c. 385, §§1, 3 (AFF); 2013, c. 544, §§6, 7 (AFF).]

4.Notifications.
After review of the claim, the State Tax Assessor, in writing, shall approve or
deny, in whole or in part, the adjustment requested.

A. The written decision must include the findings of fact upon which the decision is
based. Notwithstanding section 151, the State Tax Assessor's written determination
constitutes final agency action that is subject to review by the Superior Court in
accordance with the Maine Administrative Procedure Act, except that Title 5, section
11006 does not apply. [2013, c. 368, Pt. O, §5 (NEW); 2013, c. 368, Pt. O, §11 (AFF); 2013, c. 385, §§1, 3 (AFF); 2013, c. 544, §§6, 7 (AFF).]

B. Within 30 days of providing the municipality the written determination denying, in
whole or in part, a claim for adjustment, the State Tax Assessor shall provide a copy
of the denial letter to the joint standing committee of the Legislature having jurisdiction
over taxation matters. [2013, c. 368, Pt. O, §5 (NEW); 2013, c. 368, Pt. O, §11 (AFF); 2013, c. 385, §§1, 3 (AFF); 2013, c. 544, §§6, 7 (AFF).]

C. The State Tax Assessor shall notify the Commissioner of Education and the Treasurer
of State of any adjustment to state valuation determined under this section and the
time period to which the adjustment applies. [2013, c. 368, Pt. O, §5 (NEW); 2013, c. 368, Pt. O, §11 (AFF); 2013, c. 385, §§1, 3 (AFF); 2013, c. 544, §§6, 7 (AFF).]

6.Report.
By February 1st, annually, the State Tax Assessor shall submit a report to the joint
standing committee of the Legislature having jurisdiction over taxation matters identifying
all requests for adjustment of equalized valuation under this section during the previous
calendar year, the assessor's determination regarding each request and the amount
of any payments made by the Commissioner of Education under subsection 5, paragraph
A.